Conservative 'stealth tax' hits local people for £430

The Liberal Democrats have hit out over a new Government ‘Stealth Tax’ that will cost many households in Gloucester £430 by 2026.

This latest tax hike on households follows the Government’s refusal to increase income tax thresholds in line with inflation, which usually takes place each year.

This means even more people will earn above the lowest income tax threshold, as well as be forced to pay higher bands of tax.

Analysis shows the freeze will mean 160,000 more people in the South West of England on low pay will be paying income tax by 2026, while an additional 115,000 people will be dragged into an even higher rate tax bracket.

Household disposable incomes are set to be 1% lower in 2025/26 than they would be if there was no freeze to income tax thresholds.

Councillor Declan Wilson, Lib Dem deputy group leader and finance spokesman, said: “People are already anxious about the rising cost of living and paying their bills this winter.

“Now they face years of tax hikes under a Tory Government that is taking them for granted.

“The Prime Minister must drop this unfair stealth tax. Many people I speak to in our local community are already feeling the squeeze.

“This is the last thing households need right now. No wonder so many people across Gloucester feel the Conservative Government no longer represents them.”